Former Coral Capital Executives Plan $100 Million BNB Treasury Company

Former executives from Coral Capital Holdings, including Patrick Horsman, Joshua Kruger, and Johnathan Pasch, are planning to launch a new venture focused on accumulating Binance Coin (BNB). The trio aims to raise $100 million for initial purchases, according to an investor document. This initiative is part of a broader strategy to create a BNB treasury company, which would involve holding and managing significant amounts of BNB.

The former Coral Capital executives are leveraging their extensive experience in the hedge fund industry to drive this new venture. Their goal is to establish a financial strategy company that will focus on BNB, mirroring the approach taken by MicroStrategy with Bitcoin. This move comes as BNB continues to gain traction in the cryptocurrency market, with increasing adoption and recognition from institutional investors.

The launch of this BNB treasury company is significant for several reasons. Firstly, it underscores the growing interest in cryptocurrencies among traditional financial institutions and hedge funds. The involvement of former Coral Capital executives adds credibility to the venture, given their track record in the industry. Secondly, the strategy of accumulating BNB and holding it as a treasury asset could potentially drive up the demand for the cryptocurrency, further boosting its value.

The initiative also highlights the evolving landscape of digital assets, where major cryptocurrencies like BNB are increasingly being seen as viable investment options. The former Coral Capital executives' plan to raise $100 million for initial purchases indicates a strong commitment to this strategy. This move could pave the way for other institutional investors to follow suit, further integrating cryptocurrencies into mainstream financial portfolios.

The former Coral Capital executives' decision to focus on BNB is strategic. BNB has shown resilience and growth potential, making it an attractive option for long-term investment. The creation of a BNB treasury company could also provide a model for other cryptocurrencies, demonstrating how digital assets can be managed and held as part of a diversified investment portfolio.

To achieve their goal, the group aims for a reverse buyback of an unidentified Nasdaq-listed company. The company will then be renamed to Build & Build Corporation to reflect the Binance ecosystem ethos. After the acquisition, the company will seek a $100 million financing round, repeating the model of Strategy and other public companies announcing the accumulation of BTC, SOL, ETH, or other assets.

Binance’s Changpeng ‘CZ’ Zhao, founder and former CEO of the top exchange, stated that Binance is not directly affiliated with the strategy plan. However, he sent out a generally favorable message on having a BNB ‘Strategy’, raising demand for the token. Zhao, however, stated that BNB is the token of a public blockchain and is not linked to Binance or controlled by the exchange.

BNB has been trading with relative stability for months, as it has encouraged long-term holding and staking. BNB is also among the assets shortlisted for a potential ETF, though still facing a long process of approval. Treasury companies have achieved short-term stock growth. This time, the buyers have not announced the Nasdaq-listed firm to serve as the shell company. Crypto purchases are also used as a pivot for companies with distressed stock, in a bid to renew their activity and tap growth from the crypto market.

BNB grew in popularity with DEX activity. BNB also became more attractive as Binance ended its long-running legal battle with US regulators. The exchange is still a key hub for both centralized and decentralized activity, airdrops, and token sales, boosting the value of BNB. BNB Chain and BNB Smart Chain recently posted record activity levels, carrying over 42% of on-chain transactions compared to all other chains. The network is mostly reflecting the usage of Binance Wallet, a direct hub for decentralized swaps.

The asset has already been used as a store of value and on-chain liquidity. BNB Smart Chain locks in over $5.7 billion, developing its own ecosystem of lending protocols, DAO, and other treasuries. Holding BNB also incurs staking rewards, as well as the potential to participate in additional token airdrops. BNB is a utility token, raising the potential that both ETF and treasuries will not just sit idly in a wallet, but could earn passive income. Around 21% of the BNB supply is currently staked, and treasuries may take a while before making a dent in circulating tokens. Up to 50% of BNB tokens are already held in whale or exchange wallets, as well as early ICO buyers.